A week in which the UK's high street looked to be on course for total collapse has raised fears that we could now be in the middle of a protracted, Japanese-style period of stagnation. Economists want George Osborne to change tack.

Article considers possible changes of target for the Bank of England under the new Governor and alternatives to Osborne's fixation with fiscal austerity and the cherished AAA credit rating. Ambitious for AS macro students, excellent for Unit 4.

George Osborne was today accused of fiddling the figures after it emerged that a third of the Government’s extra investment in the NHS will be money that has already been allocated to the Department of Health.

The government is "absolutely not going to change course" on reducing the deficit, Deputy Prime Minister Nick Clegg has insisted amid fears the economy could re-enter recession.

Cranbrook Economics's insight:

is our Coalition Government able to pull us through the tough current economic climate? What do they mean whan they say "restlessly creative" when it comes to Economic Policy? What happens if we're still in this position this time next year?

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